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CA Intermediate · Taxation · Residential Status and Scope of Total Income

Meera Nair, an Indian citizen living in Dubai, visits India during tax year 2026-27 for 150 days. Her total income from Indian sources is Rs 10 lakh. She came on a visit in earlier years for short periods only. Which statement about her residential status for tax year 2026-27 is correct?

Meera is a non-resident. As an Indian citizen visiting India, the 60-day alternative condition is extended to 182 days, and her Indian income is below the Rs 15 lakh threshold. Her stay of 150 days falls short of 182 days, so neither basic condition is satisfied.

  1. AShe is resident because she stayed 150 days in India
  2. BShe is resident because she is an Indian citizen visiting India
  3. CShe is non-resident because 150 days is below 182 days and the 60-day plus 365-day test does not apply to herCorrect
  4. DShe is resident but not ordinarily resident because her stay exceeds 120 days

Explanation

Under the basic conditions, 182 days in the tax year, or 60 days plus 365 days in the four preceding years, are needed. For an Indian citizen who visits India, the 60-day period is extended to 182 days (unless the higher-income deeming rule applies). Her Indian income of Rs 10 lakh is below Rs 15 lakh, and 150 days is less than 182 days, so she is a non-resident. Treating 150 days as enough applies the 60-day rule wrongly.

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